Riley to meet with Obama to discuss economy

Montgomery, Ala. (WSFA) -- As President-elect Barack Obama formulates a massive economic rescue plan, the nation's governors look to weigh in on the issue.

"It's going to depend on what this administration does," said Governor Bob Riley.

Governor Bob riley spoke exclusively with WSFA 12 News, on the way to Philadelphia to meet with other state leaders and Mr. Obama.

It's all part of a meeting to discuss how the new administration can aid struggling states.

"There are a lot of different ways to stimulate the economy, and it's not always just taking more money and putting it into the economy," Riley said.

One solution?

Riley says tax breaks for small businesses and families would be a good choice.

"That's an easy way to get it back out into the economy, and at the same time grow the economy," he explained.

Another major issue: new guidelines for Medicaid that cut the money the Federal Government gives back to Alabama's health care providers.

"You're asking states to pick up the larger responsibility.  It just doesn't make sense to me," Riley explained.

What about state bailouts?

With sagging tax revenues and the possibility of proration in schools, Riley says any Federal aid plan needs to give states some financial freedom.

"If there are going to be allocations of Federal dollars coming into the states, I think the states should determine where it goes," Riley said.

"I think the American people should be confident that we've gone through recessions before," Obama said at a recent press conference.

It's a fact Riley says should help with a plan to move forward.

"I'm anxious to hear what President-elect Obama has to say on how he plans to stimulate the economy," he explained.

Stay with WSFA 12 News for more on this developing story.